THE RESEARCH OF ORGANIZATIONAL ENVIRONMENT AND MANAGEMENT IN PRUDENTIAL PLC

DA NANG UNIVERSITY DA NANG UNIVERSITY OF ECONOMICS STUDENT RESEARCH REPORT OF MANAGEMENT REPORT TITLE THE RESEARCH OF ORGANIZATIONAL ENVIRONMENT AND MANAGEMENT IN PRUDENTIAL PLC Author: Group Class: 46K15.1 Instructor: Hoang Ha Da Nang, 6/2021 TIEU LUAN MOI download : skknchat@gmail.com CONTENT INDEX PREFACE Reasons for choosing the topic The research subjects and scope of the thesis Study Method The structure of the thesis CHAPTER PRUDENTIAL’S ORGANIZATION AND ENVIRONMENT Introduction 1.1 The process of formation and develop 1.2 Remarkable events and important de development progress 1.3 Purpose, Mission, Vision and Core Va 1.4 Organizational structure Organizational Environment and Corporate Culture 2.1 External Environment 2.2 Corporate Culture CHAPTER THE INTRODUCTION OF THE ADMINISTRATOR Character Introduction 1.1 Character Biography 1.2 Life and Career The analysis of management roles of Mike Wells in Prudential organization 2.1 Statements of mission, vision, values 2.2 The analysis of the own opinions of P about organizational plans and strategies 2.3 The decription of types of plan that t 2.4 The administrator's perspective on or recruiting employees, on the role of people in business, on training t development team nearby TIEU LUAN MOI download : skknchat@gmail.com PICTURE INDEX Picture 1-1: Prudential plc’s organizational structure 12 Picture 1-2: Prudential Icon 20 Picture 1-3: Prudential Vietnam and SeaAbank signed a Memorandom of Understanding 21 Picture 2-1: ESG Strategy in Prudential plc 38 TIEU LUAN MOI download : skknchat@gmail.com STUDENT RESEARCH REPORT GROUP Members and evaluating grades - Đinh Thu Huệ (Team leader) - Phạm Ngô Quang Hùng - Đặng Thị Thái Hiền - Nguyễn Đức Hiếu - Ngô Quốc Hùng Students: Class: 46K15.1 Department: Banking and Finance Major: Banking and Finance TIEU LUAN MOI download : skknchat@gmail.com PREFACE Reasons for choosing the topic In the current trend of global integration, it opens up a lot of opportunities for businesses, accordingly, the uncertain and unpredictable contexts of society have posed significant challenges for managers to be wise and quick in their decisionmaking That definitely requires the skills and competencies of managers in the organizational environment, it has a great influence on the success or failure of an organization For his or her authority, the administrator is the representative as well as the leader, the "compass" in leading the employees to perform the tasks and fulfill the purpose of the organization They are also the one who connects employees and plays a decisive role for the organization Good corporate governance is the foundation for the long-term development of businesses, achieving the success that the organization expects Therefore, our Group made the decision to a research for organizational environment and management in Prudential plc as an example to clarify the role of a manager and how the organizational environment affects and influences The research subjects and scope of the thesis - Research subjects: + Organizational environment in Prudential + The Executive Director Mike Wells in Prudential - The scope of this study: + Timing: From 5th May to 7th July + Content: conducting a detailed research into organizational environmental and the administrator in Prudential plc Study Method - Data collection - Quantitative research - Qualitative research TIEU LUAN MOI download : skknchat@gmail.com Analysis and Synthesis The structure of the thesis This research project contains main following parts:ư - Chapter 1: Prudential plc's organization and environment Introduction + Clarifying the process of formation and development of the organization + Describing the mission, vision, and values of the organization + Defining the organizational structure Analyze the external environment and corporate culture of the organization + Analyze the external environment + Analysis of corporate culture - Chapter 2: The analysis of the administator Charater introduction + Talk about the life and career of the administrator of Prudential plc The administrator’s work + Statements of mission, vision, values, or business philosophies or principles + Analyze the administrator's personal views on planning and strategy + Describe the types of plans that the administrator applys in the organization: strategic plans, operational plans + The manager's perspective on organizing the operating apparatus and recruiting employees, on the role of people in business, on training the development team nearby TIEU LUAN MOI download : skknchat@gmail.com THE EXPLANATION OF CHOSEN TOPIC Peter Ferdinand Drucker - the father of modern business administration - once said: "The difference between a good manager and another is knowing how to use people" Indeed so, business is a fiercer competitive field than ever, requiring the head to be fully brave and have the right and wisest strategic mind to manage the business more and more firmly Looking back in time, we can see that from ancient times there have been organized efforts under the supervision of those responsible for planning, organizing, directing, and controlling so that we can achieve successful results Great processes remain today such as the Great Wall in China or the Pyramids in Egypt… Governance played a more significant role with the outbreak of the industrial revolution that began in England in the 18th century, swept across the Atlantic Ocean, and invaded the United States at the end of its Civil War (mid-century) 19th century) The conclusions of the causes leading to the bankruptcy of enterprises can prove the decisive role of management for the existence and development of the organization Indeed, when it comes to the causes of the bankruptcy of businesses, there can be many causes, but the top cause is often still ineffective management, or incompetent managers Under the same circumstances, but those who know how to organize better and more scientific management activities, the prospect of achieving results will be more certain Of particular importance is not only the achievement of results but also the matter of less time, money, materials and other costs, or in other words, more efficiency Today, in the integration trend of the market economy, businesses have created many opportunities but also many challenges and difficulties To survive and develop requires businesses to constantly innovate, perfect economic management tools, increase revenue, save costs to increase profits for the company To achieve that goal, enterprises must take many measures in the process of their production and business activities TIEU LUAN MOI download : skknchat@gmail.com In a fiercely competitive market today, the Banking-insurance interdisciplinary is becoming an inevitable trend This association not only brings great benefits to both parties as the insurance company insurance and banks, but above all, it brings greater benefits to customers when using this service The development of the insurance market increases the cohesion of insurance businesses with other financial institutions in the financial market such as banks and securities companies Because the financial funds created by insurance enterprises to make insurance payments will be effectively managed through reasonable fund investment activities in the financial market Besides, bancassurance activities with cooperation between insurers and banks to provide mutual services and diversify product baskets of both parties have really pulled commercial insurance activities commercial and banking activities closer together The financial sector of the economy is thus also more diversified and competitive Prudential plc is a portfolio of Asia's leading businesses, focusing on structural growth markets, as well as an insurance company that is enjoying such advantages The organization will help people get the most out of life through life and health insurance and retirement and wealth management solutions Prudential's largest market is in Asia, with more than 13 million customers in 12 countries and is a leading provider of life insurance in Hong Kong, India, Indonesia, Malaysia, Singapore, Philippines and Vietnam Prudential in the UK has around million customers and is the leading provider of life insurance and pensions in the country In order to enhance the learning and research program, our team will jointly present the results and assessments of the market, resources and management strategy of Prudential plc that we have studied However, the research has a few mistakes that are inevitable, we hope that our teacher will support, contribute more ideas and comments to make the presentation of the group better Our team honestly would like to give our thanks to the teacher Hoang Ha! TIEU LUAN MOI download : skknchat@gmail.com CHAPTER PRUDENTIAL’S ORGANIZATION AND ENVIRONMENT Introduction 5.1 The process of formation and development: Hisorical Background Prudential was founded on 30 May 1848 in Hatton Garden, London The company’s initial name was “The Prudential Mutual Assurance Investment and Loan Association” and its intention was to provided loans to working people and professional 5.2 Remarkable events and important decision-making through organization development progress Bussiness development: - In 1848: Prudential was founded on 30 May 1848 in Hatton Garden, London The company’s initial name was “The Prudential Mutual Assurance Investment and Loan Association” and intention to provide loans to the middle classes - In 1854, Prudential opened the Industrial Department and sell a new type of insurance, Industrial Insurance, to the working classes - In 1879, the Prudential Assurance Company entered its new head office, Holborn Bars - In 1881, Prudential becomes a limited liability company - In 1924, The company was first listed on the London Stock Exchange Life In 1986, Prudential procured the American insurer Jackson National - In 1994, Prudential Corporation Asia established to grow new businesses in Asia would be stewardship, we should leave our business and our communities stronger than when we found them”, How Prudential make a positive difference? “We provide solutions to some of the biggest challenges facing the world Too few people enjoy good health care or the benefit of financial protection and savings, we are increasing access to both At the same time, the world is growing older, placing financial pressure on families and societies We are bringing new retirement solutions to the places where these demographic shifts are happening fastest and developing economies need inestments in jobs and infrastructure We are channeling more and more of our customer savings into industries that power long term prosperity That’s how we fullfil our purpose and then demerger now behind us, we are entering a new phrase, we’ll continue to innovate to create solutions for our customers and continue to work to unlock value for our investors” 2.2 The decription of types of plan that the manager applied to the organization Strategic Plan: Their decisional making develops the company’s mission and vision, and set objectives for managers and employees to follow, providing direction for the company through centralized growth strategy In 2020 Prudential reviewed the Environment, Social and Governance (ESG) strategy to evaluate how the organization uses all capabilities to maximise positive social and environmental impact This strategic review reflected the changes that focus on Asia and Africa, the continued evolution into a digitally enabled business, and how the Covid-19 pandemic has highlighted the global need to access to healthcare Strategic plan delivers on that purpose by making healthcare affordable and accessible, helping people accumulate wealth through growing their assets, and empowering customers to save for their goals In this way, it ensures alignment of Prudential’s creation of shareholder returns with the creation of societal value given the nature of business and the markets in which they operate Their new ESG 40 TIEU LUAN MOI download : skknchat@gmail.com strategy distils the many ways which will help stakeholders into three core themes, all of which are closely linked to strategy and business model Prudential’s ESG strategy With the purpose is to help people get the most out of life, ESG strategy is fully aligned to that purpose, to ensure that using capabilities to maximise positive social and environmental impact Prudential’s new ESG strategy distils the many ways in which we help our stakeholders into three pillars: making health and financial security accessible, stewarding the human impacts of climate change and building social capital Picture 2-4: ESG Strategy in Prudential plc 41 TIEU LUAN MOI download : skknchat@gmail.com The three pillars of ESG strategy Making health and financial security accessible: Working at scale, they give people greater access to good health and financial security In Covid-19 pandemic, the rise in non-communicable conditions such as heart disease and diabetes, and ageing populations threaten to widen further the existing health, protection and savings gaps Behind these megatrends lie countless individual stories of people who are anxious and struggling because of a lack of access to health and finance They are committed to enabling as many individuals as possible in the markets in which they operate to make the most of their lives In particular, they are increasing their focus on underserved communities and moving beyond our traditional role of financial protection to provide services that also prevent and postpone ill-health The new promising app: Pulse, the health and wealth super-app now in live in 15 markets, is a key tool for us in meeting that ambition They take tireless eff orts in developing product off erings that meet the needs of diverse customer base Their community investment programmes, focusing on education and financial literacy, also have an important role to play in building understanding of the benefts of financial products, and in building fnancial capabilities to ensure people can make informed fnancial decisions Stewarding the human impacts of climate change: They are a responsible steward in managing the human impact of climate change They are a signatory to the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), and as a signifcant asset manager and asset owner in regions forecast to be severely impacted by global warming, Prudential has a distinctive role to play in the transition to a low-carbon economy They are decarbonising our investment portfolio and actively engaging with policymakers and investee businesses to encourage sustainable development The economies of East Asia, where their businesses are concentrated, have a greater reliance on manufacturing and primary 42 TIEU LUAN MOI download : skknchat@gmail.com industries than more developed markets, where services account for a higher proportion of GDP This means that the energy transition across the region is starting from a higher carbon intensity level and is likely to proceed at a slower pace than for more advanced economies Recognising this, as they support the move to a lower-carbon economy in these emerging markets, they strive to ensure that the transition is an inclusive one for all of society – one that supports sustainable growth and economic health within their local markets and communities They also recognise the importance of reducing the direct impact of their own operations on the environment and continue to increase the level of ambition in relation to their own emissions footprint This year Prudential have set new and stretching targets for their Scope and Scope greenhouse gas emissions, with the aim of becoming net carbon neutral across these two scopes by the end of 2030 They are in the process of assessing similar suitable targets in Building social capital: They are committed to building both their own human capital and our social capital with broader stakeholders They seek to empower people and unlock their potential by promoting diversity in representation and thought and fostering a culture of inclusion and a sense of belonging within the organisation Just as Prudential depends on the trust of our people, it also needs the trust of the external world As they develop their digital capabilities, they also prioritise digital responsibility throughout the organisation They always keep in mind that their purpose to help people get the most out of life is the reason why they are investing purposefully in artifcial intelligence, big data and other technologies, and that focus on the needs and interests of Prudential’s users 43 TIEU LUAN MOI download : skknchat@gmail.com The key features of Prudential ESG framework are exactly its three strategic pillars which have clear alignment with their business strategy Within each of these, specific diff erentiating focus areas have been identifed where it is believed there is an opportunity for Prudential to make a meaningful impact, and as such greater focus will be placed on these diff erentiators The pillars and diff erentiators are: Pillar 1: Making health and financial security accessible — Digital health innovation — Inclusive offerings — Digitally enabled financial literacy Pillar 2: Stewarding the human impacts of climate change — Decarbonising their investment portfolio — Supporting an inclusive transition Pillar 3: Building social capital — Digital responsibility — Diversity, inclusion and belonging The following strategic enablers support these pillars: — Good governance and responsible business practices — Responsible investmen — Community engagement and investment The level of influence on organizational success: This framework is fully aligned to the business strategy and purpose of helping people to get the most 44 TIEU LUAN MOI download : skknchat@gmail.com out of life by making healthcare accessible and affordable, helping people accumulate wealth through growing their assets, and empowering their customers to save for their goals The new ESG strategy distils the many ways in which they help their stakeholders into three core themes, all of which are closely linked to their strategy and business mode Prudential’s strategy is to capture the long-term structural opportunities for their markets and geographies, while operating with discipline and seeking to enhance their capabilities through innovation to deliver high-quality resilient outcomes for our customers Structural growth over the last 20 years has allowed their business to reach the scale where it can support its longterm goals through execution of its strategy and disciplined capital allocation Prudential plc has a portfolio of businesses with access to the world’s largest and fastest-growing markets Operational Planning The Group Chief Executive leads the Executive Directors and senior executives and is responsible for the operational management including single - use plans and standing plans of the Group on behalf of the Board on a dayto-day basis He clearly has to all of these following things: - Responsible for the implementation of Board decisions - Establishes processes to ensure operations are compliant with regulatory requirements - Sets policies, provides day-to-day leadership and makes decisions on matters aff ecting the operation, performance and strategy of the Group, seeking Board approval for matters reserved to the Board - Supported by the Group Executive Committee which he chairs and which reports to him on performance and implementation of strategy for each business unit and discusses major projects and other activities related to the attainment of strategy 45 TIEU LUAN MOI download : skknchat@gmail.com - Chairs the Chief Executive Committee meetings which are held weekly to review matters requiring approval under the Group’s framework of delegated authorities - Keeps in regular contact with the Chair and briefs her on key issues - Meets with key regulators worldwide - Leads on day-to-day effective stakeholder engagement Current standing plans which have been used in organization to approach to the aim of organizational achievement Serving the protection and investment needs of the growing middle class in Asia: Asia’s long-term structural trends are powerful drivers of sustainable growth These trends underpin a strong and growing demand for savings and protection across the region, as markets are challenged by low life insurance penetration and a large pension funding gap They are well placed to capture this opportunity, providing products that meet their customers’ needs and gaining political and regulatory support in the markets They continue to invest significantly in tech-driven capabilities and partnerships to address developing customer demand Significant developments include the launch of Pulse by Prudential, their health and fitness app, and 18 new digital partnerships across the region Their productive distribution footprint across Asia is diversified across a substantial agency force and bank partner network Recent developments include the renewal of our UOB partnerships for 15 years, and a new partnership with OVO in Indonesia - Offering products to new customers in Africa - one of the fastest- growing regions in the world: they have also continued to expand the range of market in Africa, one of the world’s most under penetrated markets where the population is forecast to grow by a billion by 2045 In July, they completed 46 TIEU LUAN MOI download : skknchat@gmail.com their acquisition of a 51 per cent stake in a leading life insurer, Group Beneficial, operating in West and Central Africa They currently operate in eight markets with a population of almost 400 million They continue to grow and develop their footprint through agency network and bancassurance partners They are harnessing technology to improve customer service, innovate in distribution and build a business which is scalable - Providing asset accumulation and retirement income products to US retirees: In the US, over 22 million individuals will need retirement solutions by 2035, and pension provision has been declining They see a growing demand for retirement products and an ongoing shift to fee-based solutions Jackson is evolving its product range to address these needs They have invested in a single technology platform to deliver one of the most efficient and scalable operating platforms across the industry Jackson is the clear leader in each variable annuity distribution channel and is well positioned to further enhance its market-leading annuity position in the brokerage market 2.3 The administrator's perspective on organizing the operating apparatus and recruiting employees, on the role of people in business, on training the development team nearby Operating apparatus: As he has mentioned that he wants to creat a positive legacy from all business activities and aim to provide value to customers through the products we deliver and to our shareholders through our positive financial performance At the same time, he recognises the importance of providing benefits to all our stakeholders, whether through the organization’s community investment programmes, environmental impact, engagement and talent development with colleagues or the approach to responsible investment 47 TIEU LUAN MOI download : skknchat@gmail.com Recruiting employees, the roles of people in business and training - Fostering an inclusive workforce and ensure all the employees are treated fairly and feel valued, and together have the diversity in skillsets and backgrounds that enriches the organisation The policy considers a range of diversity aspects of our employees, including gender, age, ethnicity, disability, sexual orientation and background - Outlining way and how to engage our employees and motivate them to achieve success for theGroup: promoting positive relationships with employees, representative organisations and trade unions, and maintaining a positive reputation for the treatment of employees - Setting out the importance of our people and frames how we invest in their development to deliver against ourstrategy and the future success of the organisation This includes Prudential’s Performance Management Framework - Development of our people is key to ourstrategic objectives Group Human Resources focuses on senior leadership through an annual talent review process We continue to develop leaders and critical specialistsforsenior rolesthrough succession planning We segment our talent to identify short, medium and long-term successors Development of oursenior executive leadersis a bespoke exercise that we base on their requirements - We want to foster an environment in which employees feel empowered and that they are making an active contribution to the organisation and the communities we serve We drive employee engagement through a number of 48 TIEU LUAN MOI download : skknchat@gmail.com initiatives, including colleague appreciation programmes, wellbeing programmes, networking opportunities with peers and senior leaders across functions and employee focus groups Each of our businesses manage sits own activities in this area, including employee engagement surveys, regular employee open forums with senior management and team away daysto discuss business performance Our businesses, includingGHO, have processes and, where appropriate, a policy in place for engaging with employees For any significant issuesthat are likely to impact either positively or negatively on our reputation as an employer – at both business and Group level immediate reporting to GroupHR is required - We offer a range of programmes that enable our people to grow and develop Most programmes are managed by our business units In 2018, 113 senior high-potential individuals participated in our established and well respected Group-wide leadership development programmes ‘Impact’ and ‘Agility’ and the ‘NextGeneration’ emerging talent programme These programmes were developed in partnership with worldleading academic institutions and co-delivered with businessschool thought leaders Across our businessesthere are many more examples of our continuing commitment to talent development 49 TIEU LUAN MOI download : skknchat@gmail.com REFERENCE [1] Prudential plc (2020), Prudential plc Annual Report 2020, United Kingdom [2] Mike Wells (unidentified update year), ‘Mike Wells - Finding new ways to invest in infrastructure’, Prudential plc, accessed the website in 25th May 2021, < https://www.prudentialplc.com/en/news-and-insights/insights/invest-ininfrastructure > Mike Wells (2018), ‘A growing Asian footprint’, Prudential plc, accessed the [3] website in 14th June 2021, < https://www.prudentialplc.com/en/news-andinsights/executive-interviews/a-growing-asian-footprint> [4] Mike Wells (unidentified update year), ‘Mike Wells - Investing in the next 50 years’, Prudential plc, accessed the website in 14th June 2021, < https://www.prudentialplc.com/en/news-and-insights/insights/mike-wellsinvesting-in-the-next-fifty-years> [5] the Mike Wells (2019), ‘Demerger of M&G plc’, Prudential plc, accessed website in 20th May 2021, [6] Prudential (unidentified update year), ‘Founded in 1848 and providing financial security in Asia for over 90 years’, Prudential plc, accessed 10th June, https://www.prudentialplc.com/en/about-us/our-history [7] Prudential plc (2020), Prudential plc Environmental, Social and Governance Report 2020, United Kingdom TIEU LUAN MOI download : skknchat@gmail.com ... made the decision to a research for organizational environment and management in Prudential plc as an example to clarify the role of a manager and how the organizational environment affects and influences... business legal environment in order to maximize the resources of all economic sectors, improve the competitiveness of the insurance industry, and meet the reinsurance needs of the economy and the. .. Chapter 1: Prudential plc' s organization and environment Introduction + Clarifying the process of formation and development of the organization + Describing the mission, vision, and values of the organization